Fri., April 18, 2008
The 60-day session of the 100th Legislature adjourned on Thursday, April 17. In the final weeks of the session, senators addressed several matters important to Greater Omaha and the business community.
Economic Development
LB 895 - Super Tier. This legislation allows businesses to apply for specific tax credits if they invest $10 million and create 75 jobs that pay 200 percent of the county average wage or if they invest $100 million and create 50 jobs at the same wage thresholds. Like all business incentives, this tier is performance based. This bill was introduced at the request of Gov. Heineman and prioritized by Sen. Tim Gay of Papillion.
Tax Cuts
LB 888 - Corporate Income Tax Cut Primarily Benefiting Small Businesses. The lowest income tax rate will now apply to the first $100,000 of income instead of the first $50,000. Sen. Scott Lautenbaugh who represents northwest Omaha and the Blair area prioritized this bill.
Transportation
LB 846 - Road Funding. This legislation lowers the set per-gallon fuel tax and installs in its place a percentage tax based on the price of wholesale gasoline. This is a hedge against the inflation that has been impacting our road funding programs. This is a first step in modernizing our road funding structure. This bill was introduced and prioritized by Sen. Deb Fischer of Valentine.
Legislation Benefiting North and South Omaha
LB 895 - Super Tier. A provision of LB 895 will take effect in 2009 to expand the Nebraska Advantage Act's Rural Tier to apply to North and South Omaha. The Rural Tier allows businesses that create two jobs and invest $125,000 to receive specific tax credits.
LB 956 - Directs Job Training Funds to Specific Businesses. The bill targets training-assistance dollars for small businesses, rural businesses and businesses in North and South Omaha.
LB 1154 - Changes Provisions Relating to Learning Communities and Job Training Grants. This allows a nonprofit organization that currently teaches life skills to partner with a business and a school to administer training grants in North and South Omaha.
Education
LB 1157 - School Assessment. This bill provides for statewide student achievement testing.
Budget
This started with a $60 million deficit due to a much higher than expected increase in state aid to schools. The Appropriations Committee worked on a bill to reduce that increase, but the Education Committee produced a bill that changed the state aid formula. This not only eliminated the $60 million deficit, but redistributed funding. Omaha Public Schools does well under this change and therefore has dropped its lawsuit against the state.
A couple of other highlights include a $2 million increase in turn-back financing for Qwest Center Omaha, as well as $250,000 for publicizing Omaha during the Olympic Swim Trials.
A related bill, Omaha Sen. John Nelson's LB 1165, will provide $5 million over three years to the Cultural Endowment, with the provision that private matching funds are pledged.
In the end, there were some real victories that businesses can build on in the future.
Thu., April 10, 2008
Day 57
The Legislature is in the home stretch, with adjournment just four working days away.
Highlights of this week include:
- LB 888, which reduces corporate income taxes especially for small businesses, received final approval and was signed by the Governor.
- LB 1154, which amends the Learning Community Law and allows businesses to partner with schools and nonprofit organizations to administer job training grants in high poverty areas, received final approval. LB 1157, providing for statewide student assessment testing was also given final approval.
- On Monday, senators voted 34-15 to override the Governor's veto of $14.5 million in funding for the Department of Roads. It is possible, though not certain, that this could result in an increase in the fuel tax of about one cent.
- On Wednesday, senators advanced 28 measures through various stages of consideration. LB 956, which targets job training grants to small businesses and businesses in North and South Omaha, received second round approval.
- LB 1116, which provides for moving the State Fair to Grand Island and selling the fair grounds to the University, was also advanced toward a final vote.
Today will be a light agenda as compared to recent weeks. The Legislature will be in recess this Friday and next Monday.
Next week, senators will meet for the final three times of this session.
- Tuesday will be the last day that a bill can receive second round approval or be pulled back from Final Reading for an amendment and still be eligible for a final vote this session.
- Wednesday will be the constitutionally required layover day for those bills.
- Thursday the 17th will include mainly final votes on bills and adjourning for the year.
Thu., April 3, 2008
Day 53
Counting today, there are eight meetings days remaining in the session. Much can be accomplished in a short time as Senators demonstrated on Wednesday when they gave first, second, or final round approval to 41 bills.
Wednesday's highlights included:
- Second round advancement of LB 895, the Nebraska Super Advantage Bill.
- First round approval of LB 956, a measure introduced by Senator Schimek that would target a portion of state job training grants to North and South Omaha.
- The Governor vetoed $14.5 million in Department of Roads funding that is intended to pay for increased personnel and health coverage costs. It is possible that the additional $14.5 million could result in an increase in the variable fuel tax, depending on the amount of revenue that is generated for the Highway Trust. Senators will vote on an override motion next week.
- The Governor approved the rest of the appropriations bills and the adjustment to the state aid to schools formula, which together, as of today, makes for a balanced budget.
Thursday's agenda was dominated by:
- Debate LB 1116, a proposal to move the State Fair to Grand Island and sell State Fair Park to the University for use as a research campus.
- This bill advanced on a vote of 44-3.
Next week:
There are still a number of priority bills that have not been debated, and Thursday, April 10 is the absolute last day that a bill can receive first round approval and still be in line for a final vote on the last day of the session.
Wed., April 2, 2008
Wednesday morning's agenda included:
- Second round consideration of 34 bills considered noncontroversial under the limited-debate consent calendar.
- Consideration of a number of bills, including LB 956, a proposal to target jobs training grants to North Omaha, small businesses, and rural areas.
On Wednesday afternoon:
- Debate resumes on LB 895, the Nebraska Super Advantage proposal.
On Tuesday, the Legislature took action on 14 proposals (and some accompanying a-bills), advancing some and sidelining some others.
- LB 846, providing for a change in the method of taxing motor fuels, advanced from second round of debate on a 26 to 14 vote.
- LB 888, which moves more corporate income into the lower tax bracket, was advanced from second round with little debate.
- LB 1174, which would have reinstated many of the restrictions on corporate involvement in agricultural operations that were struck down with the I-300 decision, was shelved for the year.
- LB 1001, Senator White's proposal to dedicate a portion of sales tax revenue paid by power districts for weatherization of homes advanced from second round. This measure also contains language that would require construction contractors to make payroll deductions for subcontractors that are not registered with the state.
- LB 916 is an omnibus Department of Revenue administrative proposal related to sales taxes. One of its provisions would specifically list digital delivery of products such as music and movies as taxable items. The Nebraska Supreme Court ruled in 1992 that such products are taxable items under Nebraska law. This advanced through round two.
- LB 1154 (Senator Raikes), makes numerous adjustments to the Learning Community Law. This also contains a provision allowing employers to collaborate with school districts and nonprofit organizations that teach life skills in utilizing Department of Economic Development job training grants in high poverty areas. This has advanced from second round.
- Measures receiving first round debate included LB 983, Senator Cornett's bill to extend and expand the tax credit program for gifts to charitable endowments. This was tabled for the year by Senator Cornett.
- Senator Nelson's LB 1165, which as introduced would have provided $20 million for the Nebraska Cultural Endowment was amended to provide funding totaling $5 million over three years -- if that is matched dollar for dollar with private donations.
April 1, 2008
Today is the 51st day of the 60-day session, and the agenda is packed.
Tue., Apr. 1:
- Debate on reinstating the ban on corporate-owned agricultural operations began Monday evening and continued for nearly two hours this morning before it was withdrawn by its sponsor.
- At 1:30 p.m., second round consideration began on LB 846, Senator Fischer's road funding bill. The debate could be lengthy, in which case LB 888 (corporate income tax cut) and LB 895 (Nebraska Super Advantage) would be pushed into Wednesday.
- At 6 p.m., debate shifts to five bills, including LB 983, which would expand the tax credit for gifts to foundations; LB 116, which would provide $5 million to the Cultural Endowment, and LB 956, a proposal to target jobs training grants to North Omaha, small businesses, and rural areas.
Wed., Apr. 2:
- Wednesday's agenda is expected to include LB 888 and LB 895.
Thu., Apr. 3:
- Thursday at 9 a.m., debate will begin on the Agriculture Committee's proposal to move the State Fair to Grand Island and sell the present site to the University for its "Innovation Park."
March 27, 2008
With just 13 meeting days remaining before its April 17 adjournment, the Legislature is in the midst of long hours of floor debate.
Tue., Mar. 25:
- LB 888, which is a corporate income tax cut, received initial approval.
Wed., Mar. 26:
- LB 895, which would establish a new Nebraska Advantage super tier, received first round approval on a 35 to 4 vote. This bill now includes a provision for allowing the use of a small business job and investment incentive to areas in the North Omaha Development Project and in areas of South Omaha.
- Three and a half hours of debate on Senator Fischer's LB 846, which would change a portion of the per-gallon fuel tax to a price percentage tax, culminated in the bill advancing on 27 to 12 vote.
Thu., Mar. 27:
- LB 988, a bill to adjust the education state aid formula to address a $60 million gap in the state budget will be considered.
- LB 1174, Senator Dierks' proposal to reinstate many of the restrictions on corporate structures in farm operations will be considered.
Finalization of the state budget is expected to be on Friday's agenda.
Stay tuned.